etrac Guide MARS Review Global DMS, 1555 Bustard Road, Suite 300, Lansdale, PA , All Rights Reserved.

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1 etrac Guide to MARS Review Version: 3.5 Revision Published: 06/12/2014 Global DMS, 1555 Bustard Road, Suite 300, Lansdale, PA , All Rights Reserved.

2 Table of Contents Meet the MARS Appraisal Review System... 3 More about MISMO... 4 Configuring MARS Rules... 5 To Configure a Custom MARS Rule Set... 7 To Edit a Custom MARS Rule Set... 7 Create Additional Custom MARS Rule Sets... 8 Configuring UAD Requirements... 9 UAD XML Files and PDF Files Running MARS on Appraisal Reports Client Specific MARS Rules Global DMS etrac Guide to MARS Review 2

3 Meet the MARS Appraisal Review System The MISMO Appraisal Review System (MARS ) is a robust tool found within the etrac product suite. MARS allows you to identify collateral risk automatically. The Global DMS Appraisal Review System is used by lenders, AMCs, investors, mortgage insurance companies, and appraisers to identify collateral risk, score individual risks for each appraisal report, score report findings, and extract the PDF from the MISMO XML file. This can all be done automatically, and with deference to compliance rules. Automated Collateral Review Solutions Fully customizable and configurable, MARS uses a standard rule set covering thousands of the most common errors and omissions points, in addition to the UAD rules verification as defined by the GSE s. MARS automation reduces internal review times, and helps managers make faster, more consistent and better business appraisal decisions. Uniform Collateral Data Portal (UCDP) MARS provides automated submission to the Fannie Mae and Freddie Mac Uniform Collateral Data Portal. MISMO XML Conversion Services MARS uses a proprietary conversion process to validate and convert the Base 64-encoded PDF, within the MISMO XML file. This will allow you to have both the MISMO 2.6 XML file and the complete PDF, ensuring identical information between both files. The conversion technology is based on standardized XML web services. About MISMO MISMO, the leading technology standards development body for the residential and commercial real estate finance industries is a wholly owned subsidiary of the Mortgage Bankers Association. The MISMO standards are grounded in an open process to develop, promote and maintain voluntary electronic commerce procedures and standards that allow mortgage lenders, investors in real estate and mortgages, servicers, industry vendors, borrowers and other parties to exchange real estate finance-related information and emortgages more securely, efficiently and economically. MISMO promotes data consistency among transaction participants, reduces processing costs, increases transparency and boosts investor confidence in mortgages and real estate as asset classes while permitting cost savings to be passed on to borrowers and other customers. Global DMS etrac Guide to MARS Review 3

4 More about MISMO MISMO or the Mortgage Industry Standards Maintenance Organization is a not-for-profit subsidiary of the Mortgage Bankers Association, and is a developer of technology standards for both residential and commercial property transactions within the United States. MISMO was tasked with improving data consistency within the mortgage industry. The goals of the organization are to reduce costs, increase transparency, and promote confidence in mortgages for investors. MISMO has had a positive impact on the way that data is stored and shared, since the collapse of the housing market several years ago. Thanks to the transparent design, use of a single business vocabulary, and the availability across the entire mortgage industry. Professionals and businesses that use the MISMO standards will meet the rigorous industry demand for increased transparency, access to complete data sets, and will have more supported analysis of the industry. MISMO provides standardized vocabulary and definitions within the data that is exchanged between mortgage industry professionals, to enable clear and consistent communications. The guidelines focus on eliminating redundancy and multiple meanings, and follow four main points to help standardize mortgage data: Things with the same name are the same Things with different names are different Be conservative in what you send, and liberal in what you receive Send what you have, and the recipient will take what they need In the past, mortgage information was provided in either Microsoft Word or PDF documents, which made the information difficult to extract, transport, and analyze on a consistent basis due to the many different types of word processing programs being used. This prevented systems from interacting reliably. In order for Mortgage Originators to maintain loan information, they would often transcribe the information from third-party reports, into their internalreview spreadsheets, forms, documents, or internal systems. This was a tedious process that often resulted in errors and omissions. The MISMO organization has effectively created data standardization and enhanced communication by utilizing XML (Extensive Markup Language), which allows businesses and professionals within the industry to streamline shared data contained in forms or reports consistently. The XML format defines a set of rules for encoding documents that is readable by both humans and computers, and helps increase transparency by emphasizing simplicity, generality, and usability over the internet. MISMO also does not require professionals to use a specific type of software, program, or even loan-documentation form, and only dictates how to format the data that is sent to another party. This unique feature means that businesses and professionals within the industry can develop, run, and maintain their own platforms, while still having uniform efficiency. The organization follows a democratic approach to the development and maintenance of a comprehensive set of standards and data points for all stages of the mortgage loan life cycle, and has published specifications that support the following processes: underwriting; mortgage insurance application; credit reporting; flood and title insurance; property appraisal; loan delivery; product and pricing; loan servicing; and secondary mortgage market investor reporting. Global DMS etrac Guide to MARS Review 4

5 Configuring MARS Rules The MARS rules can be configured to best suit your appraisal report requirements. Each rule can be weighted on a scale of 1-10 Priorities can be set for each rule: o FYI o Warning o Critical The MARS Review Grading System uses the collegiate scale = A = B = C = D 0 59 = F To ensure that the review is fully in-line with your business needs, you can configure the MARS rules for each review form. Typically, this task is completed by a Staff Reviewer. To access the configurable MARS rules, click on Setup and then click on MARS Rules. Global DMS etrac Guide to MARS Review 5

6 You can change the Priority and the Weight for each rule. This will affect the grade that MARS will provide for the appraisal report for which these rules are configured. Priority: Weight: FYI 1-10 Warning Critical You can unselect any rules you would not like MARS to run, when you run the MARS REVIEW. Click the Save button to save your MARS Rules configuration. Global DMS etrac Guide to MARS Review 6

7 To Configure a Custom MARS Rule Set At the bottom of the Rules list, enter a descriptive name in the Custom Rule Set Name field. Click on the Save As button to create the new rule set. To Edit a Custom MARS Rule Set From the MARS Rules page, select the Report Type. The custom rule sets will be available in the additional drop-down menu. Select the rule set, and click Show Rules. After changes have been made to the custom rule set, click on the Save button. Global DMS etrac Guide to MARS Review 7

8 Create Additional Custom MARS Rule Sets For instance, if multiple Clients have similar MARS requirements, you can create one set of rules for ClientA, use the Save As option, and spend less time tweaking the cloned set of rules for ClientB. From this screen, select the Report Type, and the desired custom rule set. Enter a descriptive name in the Custom Rule Set Name field, and click on the Save As button. This will create a cloned set of MARS rules from the drop-down menu, but with a new name. The new set of MARS rules can then be customized separately. Global DMS etrac Guide to MARS Review 8

9 Configuring UAD Requirements UAD requirements are configured at the Product-level. Typically, etrac users will create multiple Products for the same form. For instance, there may be a non-uad 1004 Product, and a UAD 1004 Product. If the UAD checkbox on the Product is selected, then the order is flagged as requiring UAD compliance. When MARS is run on any file associated with an order that requires UAD compliance, then MARS will run UAD checks on the appraisal report, in addition to the standard MARS rules that you have configured. Note: The UAD rules for MARS cannot be configured. By default, they have a Critical priority. To view your Product configuration, go to Setup > Manage Products. Click Manage Products again to view your Products. Click on Edit adjacent to a Product to view the Product Details page, and make any changes. Global DMS etrac Guide to MARS Review 9

10 On the Product Details page, you can edit the UAD requirement. Click on the Update Product button to save any changes. Global DMS etrac Guide to MARS Review 10

11 UAD XML Files and PDF Files The Files Available For Download page is the hub of the Order and Review Process. Any file that is uploaded to an order is retained here. The System will retain almost any file that you upload. When MARS is run on a UAD XML file, the embedded PDF will be extracted. The PDF and the full MARS Review will be available on the Files Available for Download page. In this image, we see that a UAD XML was uploaded. The MARS Review was run on this file, and the AppraisalReport.pdf was extracted. The full MARS Review is also available. The UCDP currently accepts 8 appraisal report forms. For orders requesting any appraisal report of these forms, we strongly recommend that appraisers submit reports in the 2.6 MISMO XML format. The XML file is new standard, and is the required file format of the GSE s. MARS will run quickly and efficiently on these files. Forms Accepted by the UCDP UAD Forms Non-UAD Forms C Unfortunately, since the onset of the UAD rules, forms software vendors have been updating their forms very frequently. Running MARS on PDFs requires building templates based on those forms. Since the forms are constantly changing, it has been very difficult for us to maintain an up-to-date database of forms from all of the various software vendors. As time goes on, we may be able to create new templates to accommodate updated forms. However, since the GSE's require submissions in the XML format, this is our top priority. You will find that MARS will run on some PDF s for these forms flawlessly, while other PDFs result in errors. While this is very important to us, we do encourage you to ask your vendors to submit the GSE standard XML files. For appraisal report forms beyond those mentioned above, PDF submissions will be accepted. Please note that we will expand our requirements to stay in-line with GSE requirements. As the GSE s accept additional forms to the UCDP, we would begin to require XML submissions for those forms, as well. Global DMS etrac Guide to MARS Review 11

12 Running MARS on Appraisal Reports MARS can be run simply by clicking on the MARS Review link adjacent to file that you would like to run MARS on. The automated review process takes only a few moments. When the Review is complete, a MARS Review Summary Page will appear. The Summary Page shows all of the MARS rules that were flagged in the Review. The most critical failures are at the top, while less critical failures are listed beneath. Global DMS etrac Guide to MARS Review 12

13 A more comprehensive MARS review can be found on the Files Available For Download Page. This provides a Google location map, and a pie chart with details about the MARS score. A full list of the flagged MARS Rules is also provided, below the Property Summary. The MARS Review can also include your company logo. Global DMS etrac Guide to MARS Review 13

14 Client Specific MARS Rules Client Specific MARS Rules is an add-on that allows multiple rule sets to be created and associated with a specific Client. A custom MARS rule set must first be created. Please refer to the Configuring MARS Rules section for details. Select or un-select any rules that do not suit the needs of the Client. Change the Priority and the Weight of each rule, to ensure that MARS will provide specialized scores for this Client. Input a descriptive name in the Custom Rule Set Name field, and click Save As. Navigate to the Client profile. Setup > Manage Clients > Manage Clients > Select the letter of the Client > Click Update On the Client Profile, scroll toward the bottom of the page, and click on Click here to configure MARS Rule Sets. Global DMS etrac Guide to MARS Review 14

15 For the form that requires Client-Specific MARS rules, click Edit. Select the desired custom rule set from the drop-down menu. Click on Update to save this option. Note: If no rule sets are selected, the Standard Rule Set for that form type will be used. Global DMS etrac Guide to MARS Review 15